2024 (11) TMI 1059 - AT - Income Tax

Search and Seizure proceedings - cash found in the locker - HELD THAT - Cash in two lockers were belonged to RNB Temple Trust and Ram Bajaj Foundation. What is relevant is cash available with the Trust. As per the Balance Sheet submitted before us, it clearly indicates that the Trust holds cash in hand to the extent of Rs. 1,79,00,000/-. Therefore, the cash found in the locker which pertains to RNB Temple Trust is already brought on record to the extent of Rs. 1,79,00,000/-. Accordingly, the addition sustained by the ld.CIT(A) to the extent of Rs. 4,00,000/- is already explained. Therefore, this addition of Rs. 4,00,000/- is also allowed. Cash found in other locker of SBI no doubt, the Balance Sheet finalized by the foundation was accepted in its assessment. It is also fact on record that the Balance Sheet was finalized subsequent to the search and further, the locker was also operated one day before the search operation. Keeping the overall facts on record, we observed that all the cash of RNB Temple Trust and the Ram Bajaj foundation was kept in the lockers operated by the family members of Bajaj Group and it is a fact on record that almost all the cash kept in the locker were belonged to the RNB Temple Trust and Ram Bajaj Foundation and 95% of the submissions made by the assessee are accepted by the ld. CIT (A). All the cash kept in the lockers which were specifically earmarked for the purpose of construction of temple and running of Ram Bajaj Foundation. Cash declared in the Balance Sheet of both the entities are matching with the cash found in the locker, one has to go by the circumstantial presumption that the cash found in the lockers are meant for the temple construction and for the purpose of running of educational institution. Therefore, there is no evidence brought on record to show that this cash belongs to the members of Bajaj Family except applying presumption. Accordingly, we are inclined to delete the addition made by the ld. CIT (A). Decided in favour of assessee.

Summary

Issues Involved:

1. Jurisdictional Validity of the Assessment Order under Section 153A.
2. Legality of the Search and Seizure Operation.
3. Addition of Cash Found During Search as Unaccounted Income.
4. Interest Charged under Sections 234B and 234C.
5. Validity of Proceedings without Document Identification Number (DIN).

Detailed Analysis:

1. Jurisdictional Validity of the Assessment Order under Section 153A:

The assessee contended that the assessment order under Section 153A read with Section 143(3) was illegal due to lack of valid jurisdiction. However, during the hearing, the assessee did not press this issue, and it was not adjudicated upon by the Tribunal.

2. Legality of the Search and Seizure Operation:

The assessee argued that the search operation conducted was unlawful and invalid. The search was carried out under Section 132 of the Income-tax Act, 1961, at premises associated with the Bajaj Group, including the assessee's premises. The Tribunal did not specifically address this issue as it was not pressed during the hearing.

3. Addition of Cash Found During Search as Unaccounted Income:

The primary issue addressed by the Tribunal was the addition of cash found during the search operation. Cash amounting to Rs. 63,00,000 was found in lockers jointly held by the assessee and others. The assessee claimed that the cash belonged to RNB Temple Trust and Ram Bajaj Foundation. The CIT (A) partially accepted the assessee's explanation, attributing Rs. 1,75,00,000 to RNB Temple Trust based on audited financial statements. However, Rs. 18,00,000 was added as unaccounted income of the assessee under Section 69A for lack of satisfactory evidence. The Tribunal found that the cash found was consistent with the amounts recorded in the financial statements of the Trust and Foundation, and there was no evidence to suggest the cash belonged to the assessee personally. Thus, the Tribunal deleted the addition of Rs. 18,00,000, accepting the assessee's explanation.

4. Interest Charged under Sections 234B and 234C:

The issue of interest charged under Sections 234B and 234C was consequential and not specifically addressed, as the primary addition was deleted.

5. Validity of Proceedings without Document Identification Number (DIN):

The assessee raised the issue of the assessment order being invalid due to the absence of a Document Identification Number (DIN) as mandated by CBDT Circular No. 19/2019. However, this issue was not pressed during the hearing and was not adjudicated by the Tribunal.

Conclusion:

The Tribunal allowed the appeal, holding that the cash found during the search was explained satisfactorily as belonging to RNB Temple Trust and Ram Bajaj Foundation. The addition of Rs. 18,00,000 as unaccounted income was deleted, and the appeal was decided in favor of the assessee.